Shooting Star and Inverted Hammer

A shooting star and an inverted hammer share the same candlestick shape — a small body positioned near the bottom of the candle's range, with a long upper wick at least roughly twice the body's length and little to no lower wick — distinguished by the trend context preceding them, the mirror-image counterpart to a hammer and hanging man (see Kaavon's "Hammer and Hanging Man" glossary definition). When this shape forms after a sustained uptrend, it's called a shooting star and interpreted as a bearish reversal signal, suggesting buyers pushed price higher during the period but sellers overwhelmed that advance by the close.

When the identical shape forms after a sustained downtrend instead, it's called an inverted hammer and interpreted as a cautiously bullish signal, suggesting buyers managed to push price notably higher at some point during the period, even though sellers pulled it back down by the close — a sign that buying interest may be emerging within an otherwise still-falling trend. As with the hammer and hanging man, confirmation from subsequent price action is generally expected before treating either pattern as a reliable signal.